Home / Knowledge / News / Apparel/Garments / Vietnam garment sector braces for TPP
Vietnam garment sector braces for TPP
Jan '16
In order to take the complete benefit of Trans-pacific Partnership Pact (TPP), a free trade agreement involving 12 nations, the Vietnam National Textile and Garment Group (Vinatex) will increase the local content of its products to 60 per cent by 2018, according to Vietnam media reports.

Vinatex recently put into operation two yarn making factories and a dyeing-weaving plant, in order to get benefited from the “Yarn Forward Rule”. This rule requires the TPP member country to use a only yarn produced in any other TPP member country to receive duty-free access. Vinatex will also produce around 12,000 tonnes of knitted material a year. Apart from this six other garment making plants are also expected to be completed this year, said Vinatex chairman Tran Quang Nghi.

TPP will bring down the taxes by 100 per cent for Vietnam, as a result the Vietnamese textile and garment industry will get a boost in terms of volume and turnover. However, the actual benefit will take some time as the TPP needs to be approved by parliaments of all member countries before it can be implemented.

Meanwhile, Vinatex general director Le Tien Truong said that global demand for textiles and apparel will stay at around the same level this year as it was in 2015 since except for the US, major markets like Japan and Europe are showing low economic growth. He expects Vietnam's textile and clothing sector to grow at around 12 per cent this year.

The moves of countries in the region to devaluate their domestic currencies has reduced the production cost in those countries compared to Vietnam's, which might let the buyers to switch orders to other countries like Indonesia, Myanmar and China, said Nguyen Xuan Duong, general director of Hung Yen Garment Company (Hugaco). (NA)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Oct 2016

Indian govt plans roadshows to promote textile exports

The Indian government has planned to conduct roadshows to boost the...

Textiles | On 24th Oct 2016

TPP may hit roadblock

The 12-member Trans-Pacific Partnership (TPP) that was signed earlier ...

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Interviews View All

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search